Is Shree Marutinand overvalued or undervalued?

As of 21 July 2025, the valuation grade for Shree Marutinand has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. The PE ratio stands at 14.72, the EV to EBIT ratio is 12.99, and the EV to EBITDA ratio is 12.19, which are relatively high compared to more attractive peers like PTC India, which has a PE ratio of 9.9 and an EV to EBITDA of 4.58.
In comparison to its peers, Shree Marutinand's valuation metrics indicate a premium positioning within the industry. While the company has a solid ROCE of 15.37% and ROE of 14.87%, these returns do not sufficiently justify its current price level, especially given the significant decline in stock performance over the past year, where it has underperformed the Sensex by a substantial margin. Overall, the combination of high valuation ratios and poor stock performance suggests that Shree Marutinand is overvalued in the current market environment.